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How Forward Rates are Calculated in Foreign Exchange
June 19, 2018
How Forward Rates are Calculated in Foreign Exchange
The method of calculation of forward rates is similar to that for spot rates. The only difference is that in…
What are Fixed and Option Forward Contracts
June 18, 2018
What are Fixed and Option Forward Contracts
Fixed and option forward: A fixed contract is one where the parties agree on the amount and the rate at…
4 Factors that Determine Forward Margin in Exchange Rates
June 11, 2018
4 Factors that Determine Forward Margin in Exchange Rates
When an exporter quotes his price to the importer, he bases his calculations on his cost of production and the…
How Ready Rates are Calculated on the Basis of Cross Rates for Currencies
June 11, 2018
How Ready Rates are Calculated on the Basis of Cross Rates for Currencies
Calculation of Ready Rates:Â Buying Rates. Let us call the currency (other than US dollar) for which the exchange rate is…
What are Cross Rates and Chain Rule
June 6, 2018
What are Cross Rates and Chain Rule
India, buying rates are calculated on the assumption that the foreign exchange acquired is disposed of abroad in the international…
How to Interpret the Quotations in International Markets both Spot and Forward
June 6, 2018
How to Interpret the Quotations in International Markets both Spot and Forward
Exchange rates in international markets:Â In international markets, all rates are quoted in terms of US dollar. For instance, at…
The Salient Features of Export Earners Foreign Currency Account
June 5, 2018
The Salient Features of Export Earners Foreign Currency Account
The exporter/beneficiary of a foreign exchange remittance has the choice that he may retain up to 25% of the value…
Different Types of Selling Rates in Foreign Exchange
June 5, 2018
Different Types of Selling Rates in Foreign Exchange
Types of Selling Rates Similar to buying rates. There are two types of selling rates. 1. TT Selling Rate. This…
Different Types of Buying Rates in Foreign Exchange
June 3, 2018
Different Types of Buying Rates in Foreign Exchange
When the bank buys foreign exchange from the customer, it sells the same in the inter-bank market at a better…
Difference Between Spot and Forward Rates
May 31, 2018
Difference Between Spot and Forward Rates
Spot Rate. If the contract with the customer to buy or sell foreign currency is agreed upon and executed immediately…